Vendor Managed Inventory (VMI):

Vendor Managed Inventory (VMI) is a procurement and planning practice in which a company delegate’s key inventory management functions to one or more of its suppliers. Under this arrangement the supplier determines the items, quantities, and delivery schedules on behalf of the customer based on information it receives from the customer’s inventory and procurement systems. Using VMI, manufacturers and distributors can anticipate customer needs and provide inventory more proactively than is possible using traditional procurement methods

During the breakout session we will be discussing 3 different ways of implementing VMI using Oracle e-business suite

Option 1: VMI with consigned inventory model - Requires 11.5.9 for Inventory, purchasing and

Collaborative planning.

Option 2: VMI without consignment model - Requires 11.5.8 for Inventory, purchasing and

Collaborative planning (Family pack H)

Option 3: Without Oracle VMI functionality - Ability to track vendors inventory and promise

using ATP for customers using Oracle apps prior to 11.5.8

In all the 3 options we will discuss how it will benefit suppliers and customer as given below

Benefit for the supplier:

Ø The ability to access customer on-hand quantity information, forecast information, minimum and maximum inventory thresholds, in-transit inventory quantities and expected receipt dates in order to determine when to ship goods

Ø The ability to manually execute an approved purchase requisition or blanket release on the customer system and to track the status of the order through receipt, storage, and consumption by the customer

Ø The ability to automate replenishment proposals

Benefit for the customer:

Ø The ability to differentiate between goods that must be replenished by a supplier from those which are internally planned and replenished

Ø The ability to consume VMI materials in Work-In-Process or to explicitly take responsibility for planning from the supplier as needed

Ø The ability to better estimate suppliers production schedules based on anticipated demand from the customer.

Biography:

Arul Murugan, CPIM is a Managing Principal Consultant with enrich IT and is specializing in the implementation and upgrade of Oracle e-business suite. He has been a functional lead consultant / architect for about 8 years implementing Oracle for manufacturing and service industry in the areas of Supply chain planning, Manufacturing, Distribution and CRM. Arul has done several successful full life cycle Oracle implementations and also extended the Oracle functionalities after Go-Live.

For more information on enrich IT, please visit www.enrichIT.com (Experts in extending Oracle e-business Suite)